Federal Direct Graduate PLUS Loans

A Federal Direct Graduate PLUS loan is an unsubsidized loan available to graduate students.

Eligibility

• The student must be attending at least half-time (3 hours).
• The student must have good credit history.
  A student with adverse credit may be eligible with a credit-worthy endorser.
• Completion of the FAFSA is required.

Repayment

The student, is responsible for repayment of the PLUS loan. The Federal Direct Graduate PLUS Loan has the following conditions:

• Repayment begins 60 days after full disbursement of the loan proceeds for the academic year. The student can defer loan payments until falling below a half-time enrollment status.  
• The repayment term is up to 10 years.
• There is no interest grace period. Interest begins to accumulate when the first disbursement is made.
• The student must begin repaying both principle and interest while in school unless the student requests a deferment.

Graduate PLUS Loan Limits

The student may only borrow up to the cost of attendance minus any other financial aid awarded.

Interest Rate and Origination Fee

For the 2008-2009 school year, the interest rate is 7.9%. An origination fee of up to 4% may be charged.

Applying for a PLUS Loan

Applying for a Direct Graduate PLUS Loan is a four-step process. First, the student must complete the Free Application for Federal Student Aid (FAFSA). Second, the student completes a Federal Direct Graduate PLUS Loan Application. Third, the student must complete Direct Graduate PLUS Loan entrance counseling .  Lastly, after the application is processed along with a credit check, the student will be asked to complete the Direct PLUS Master Promissory Note (MPN). Do not complete the MPN until you receive approval from the Office of Student Financial Aid.

Federal Direct Graduate PLUS Loan Application

Borrowers must complete the Federal Direct Graduate PLUS Loan Application. The information obtained on the application will allow the Office of Student Financial Aid to complete a credit check.

Master Promissory Note (MPN)

After the Federal Direct Graduate PLUS Loan Application has been received and the PLUS Loan approved, the borrower will be asked to complete the Federal Direct PLUS Loan Master Promissory Note. UHCL utilizes the multi-year MPN. The MPN acts as a contract between the borrower and the U.S. Department of Education. By signing the MPN, a borrower promises to repay the amount loaned and agrees to other important terms of the loan. The MPN must be completed in order for the loan funds to be disbursed to the student’s account. The MPN may be signed online at https://dlenote.ed.gov/empn/StudentLoanSelector.jsp.

Disbursements

The disbursement will arrive electronically, and the loan will be applied to the student's account. Tuition, fees and/or other balances will be deducted. Any disbursement in excess of the amount owed to UHCL is refunded to the student’s refund preference.